ASTI Holdings (575) H1 2023 earnings summary

Executive summary

• 1H2023 revenue fell 12.6% YoY to S$28.363m amid slower customer demand; the period swung to a net loss of S$0.818m from net profit of S$2.558m.

• Gross margin declined to 22% from 25%; foreign exchange shifted to a S$0.815m loss from a S$1.230m gain.

Financial highlights

• Revenue was S$28.363m, down 12.6% YoY; gross profit was S$6.349m versus S$8.131m.

• Loss before tax was S$0.375m versus profit before tax of S$3.276m; net loss was S$0.818m versus net profit of S$2.558m.

• Other income rose S$1.1m YoY, mainly from write-backs relating to a related company and associates; administrative expenses increased 2.0% to S$5.002m.

• Finance costs increased to S$0.570m from S$0.200m, reflecting higher interest rates and external borrowings; tax expense was S$0.443m versus S$0.718m.

Outlook and guidance

• Outlook remains challenging due to semiconductor-sector slowdown, slower economic growth in China and geopolitical uncertainty.

• Cost controls from the FY2021 restructuring will continue while opportunities for business expansion are explored.

• ASA’s outlook remains challenging amid global political and economic uncertainty; it continues to seek business improvement opportunities.